ADCB attains balance between efficiency and growth by enhancing risk resilience
Financial performance in credit ratios indicate strong credit risk management brought about by effective credit and collections within ADCB, one of the most efficient in the UAE. December 11, 2012 | Esther TanAbu Dhabi Commercial Bank (ADCB) is one of the largest banks in the United Arab Emirates (UAE) with 12% market share by loans and 10% market share by deposits as of 2011, servicing over 450,000 retail customers and some 34,00 corporate clients. The acquisition of Royal Bank of Scotland’s (RBS) retail, wealth management and SME banking business in the UAE in 2010 increased its customer base and altered its portfolio composition, which made managing crucial credit ratios effectively even more important. ADCB runs comprehensive credit risk assessment Figure 1. ADCB’s credit risk infrastructure Please click to view enlarged image
The challenge Coming out from the systemic crisis of 2009 and 2010, the challenge for UAE banks in 2011 was to grow and improve profits in a year when time-tested and proven strategies were not likely to work as well as they did in the past. From a pre-crisis era of supernormal growth, banks were confronted with a completely new set of issues of planning for subdued growth. The need of the hour was to change the mind- set from “high growth” to “greater efficiency”. At this time, UAE banks also faced two unique challenges: 1. The absence of credit bureau, which can potentially lead to excess lending and mounting of NPLs in the banking sector as it runs the risk of bringing highly leveraged customers onto the book since UAE is an overbanked and highly saturated market. 2. The Central Bank of UAE implemented new regulations for retail banking in May 2011,... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Credit Risk, Operational Risk & Security, Regulation, Risk and Regulation, Technology & Operations, UAECredit Risk,OperationalRiskSecurity,riskregulation,Risk and Regulation,technology,UAE, Credit Risk,Operational Risk & Security,Regulation,Risk and Regulation,Technology & Operations,UAE, Keywords:ADCB, RBS, Central Bank Of UAE, Flexcube, FICO ADCB, RBS, Central Bank of UAE, Flexcube, FICO
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